As of June 1, foreign travelers will receive VAT refunds for the goods they have purchased in Vietnam when leaving the country via Hanoi's Noi Bai or Ho Chi Minh City's Tan Son Nhat airports.

Under this pilot scheme launched by the Prime Minister, any foreigner leaving Vietnam with an invoice worth at least VND2 million (US$95.2) can claim VAT refunds at the two major terminals, says the Ministry of Finance in its newly-issued circular for implementation of the scheme.

Foreign tourists are entitled to receive 85 percent of the total VAT in Vietnamese dong, while the remaining 15 percent will be given to selected commercial banks as VAT refund fees for their handling of the tax repayments.

If they want to convert their refunds into another currency, tourists can conduct the transaction at the exchange rate listed at the time of the exchange.

Foreigners wishing to receive the refunds are required to present to the banks in charge their boarding card and invoice cum VAT refund declaration form approved by the customs agencies prior to their boarding.